IPPS-A HR and Payroll Specialist Practice Exam – Complete Preparation 2026

The correct choice pertains to annual leave and sick leave balances, as these are essential components of leave management in payroll and human resources practices. Annual leave, often known as vacation leave, is accrued by employees over time and is intended for personal time off. Sick leave allows employees to take necessary time off for health-related issues without the loss of income. Both forms of leave are fundamental in ensuring employee well-being and maintaining work-life balance.

Monitoring these leave types is crucial for compliance with employment regulations and organizational policies. Keeping accurate track of annual and sick leave helps prevent potential abuse of leave entitlements and ensures that employees are utilizing their leave in a way that supports their health and productivity.

The other types of leave mentioned, such as compensatory, maternity, bereavement, and holiday leave, may have different monitoring requirements and may not be tracked in the same capacity or under the same regulations as annual and sick leave.